The Rise of Enterprise IT-as-a- Service

Transcription

1 The Rise of Enterprise IT-as-a- Service Stanton Jones, Director and Emerging Technology Analyst, ISG Bryan Hair, Vice President and Chief Service Officer, Managed Cloud Solutions, Hitachi Data Systems October 22, 2014

2 WebTech Educational Series The Rise of Enterprise IT-as-a-Service IT leaders are increasingly weighing the benefits and risks moving of engaging with vendors that deliver technology as-aservice. Many as-a-service vendors promise to deliver decreased complexity along with committed savings, back to the business. However, oftentimes clients are not prepared to make the necessary operational and governance related changes necessary to enable vendors to transform their environment. Presenting will be Information Services Group (ISG), a leading technology insights, market intelligence and advisory services company, along with Hitachi Data Systems. Join this WebTech to learn from ISG: How complexity is increasingly driving organizations to evaluate and adopt consumption-based, as-a-service delivery models Recommended criteria to evaluate as-a-service vendors How IT organizations can respond to this trend by creating robust Service Integration & Management functions Hear best practices and case studies from Hitachi Data Systems demonstrating how clients can move to an IT-as-aservice model that delivers decreased complexity and committed cost savings.

3 Stanton Jones, Director and Emerging Technology Analyst, ISG knowledge powering results Bryan Hair, VP and Chief Service Officer, Managed Cloud Solutions, Hitachi Data Systems Information Services Group is a leading technology insights, market intelligence and advisory services company, serving more than 500 clients around the world to help them achieve operational excellence. ISG supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services, with a focus on information technology, business process transformation, program management services and enterprise resource planning. Clients look to ISG for unique insights and innovative solutions for leveraging technology, the deepest data source in the industry, and more than five decades of experience of global leadership in information and advisory services. Based in Stamford, Conn., the company has more than 800 employees and operates in 21 countries.

4 The Complexity Avalanche The Complexity Avalanche has peaked; buyers increasingly want outcomes, as opposed to features. The Consumption Gap Source: Complexity Avalanche 2014 Information Services Group, Inc. All Rights Reserved 4

5 Market Response to the Complexity Avalanche Buyers are increasingly interested in more flexible, as-a-service delivery models in lieu of product purchases. The kicker: these buyers are increasingly outside of IT. Enterprise CIOs estimate that in 5 years, they expect to spend a majority of their software budgets on SaaS, including ERP. - Citi Research Who owns the asset is not the critical question anymore in fact, customers often now view owning the asset as a negative. - B4B By 2010, 90% of technology spending will be outside of IT. - Gartner 2014 Information Services Group, Inc. All Rights Reserved 5

6 As-a-Service: Evaluation While the as-a-service model promises to improve the complexity-laden product model, careful evaluation is needed in a still-maturing market. Eliminate upgrades Eliminate customizations Lower TCO Pay per user Decrease reliance on IT Pay only for what you use Self-service provisioning Lower TCO Inherent modernization Highly elastic SaaS Are releases forced or optional? Who will configure? Does business case assume an on-prem upgrade? How much required up front? What about integration and ITSM? IaaS Do you know how much you use today? Does retained org have necessary skills? Does analysis assume low tier storage? Transformation required to get there Is there a RRC threshold? 2014 Information Services Group, Inc. All Rights Reserved 6

7 As-a-Service: The Supplier s Operating Model As organizations adopt more discrete as-a-service offerings and build a technology supply chain, the ability to evaluate and adopt the supplier s operating model will become critical as well. Product Focused Source: B4B Basic Offer: Level 1 Supplier Best Product, Fair Price Standard, Reliable Product Supplier Operating Models Complex Offer: Level 2 Supplier Optimize Offer: Level 3 Supplier Customer Value Power + Fast and Sure Availability Supplier Offer Power Implementation & Maintenance Service Tailored Product + Optimal ROI + Ease Adoption Services Operate (Managed) Services Connected Product Outcome Offer: Level 4 Supplier Outcome as a Service Outcome Focused 2014 Information Services Group, Inc. All Rights Reserved 7

8 As-a-Service: The Link between Architecture & Contracting As organizations move to an as-a-service model, the way that adopt technology services will change dramatically as well. Client s Estate Company wants to transform, outsource, or renew an existing agreement Workload Rationalization Process Choosing the right environment to consume from Common questions: Why are we doing all this when we re just going to sign provider s paper? Why do I have to sign two contracts? Why do we need to talk about apps this is about infrastructure? Migrate to SaaS Migrate to IaaS - Shared Public RFS Approach Migrate to IaaS - Virtual Private Virtualize Dedicated Private Forklift/no change RFP Approach Standard Contract 1 Standard Contract 2 Standard Contract n Custom Contract 1 Providers are gradually moving to this model, rather than by traditional towers, however buyers need to change the way they evaluate and contract to fit the as-a-service service delivery and architecture model Information Services Group, Inc. All Rights Reserved 8

9 As-a-Service: Service Integration & Management As organizations continue to rapidly adopt as-a-service via out-tasking the need for an integrated Service Integration & Management function increases: Business Demand Business Demand Business Unit n Business Unit 1 Budgeting & Forecasting Requirements Definition Business Unit 1 Budgeting & Forecasting Requirements Definition Business Unit n... Aligning Services to Business Needs & Aggregating Demand Pressure to rapidly reduce cost/move faster Service Integration and Management Business Relationship Management Business Service Catalog Management Demand Management Project Management (incl. Transition & Transform) Customer Satisfaction Management Financial Management & Chargeback Risk Management & Controls Assurance Measurement & Reporting Cross-Provider Service Management for IT and Business Process Services: Service Component Catalog Service Level Capacity Availability Service Continuity Information Security & Access Event Incident & Problem Service Request Change Service Asset and Configuration Release & Deployment Service Validation & Testing Evaluation Knowledge Service Desk Systems Integration Rapid/unstructured functional as-a-service out-tasking Management of Service Delivery (Internal & External) Service Delivery Service Towers 2014 Information Services Group, Inc. All Rights Reserved 9 EUC Hosting Network AMS Cloud & Out-Tasking Public Cloud On-Prem Cloud SaaS Testing

10 As-a-Service: Key Takeaways The as-a-service delivery model is an enabler to an outcome-based relationship with your suppliers, rather than a means to an end. Dramatic increases in features have led to significant consumption gaps. The market is responding by quickly moving traditional product-based services to an as-a-service model. Significant due-diligence is required to understand if the provider is simply bundling traditional services into a per user price, or has actually build a new commercial offering capable of delivering committed KPI or financial results. The architecture of the offering has a significant impact on the way the service is evaluated, contracted for and adopted. As these services proliferate, organizations need to build robust Service Integration & Management capabilities in order to effectively match business demand with technology supply. The maturity of the supplier s operating model will dictate if they can deliver outcomes, rather than simply technology services Information Services Group, Inc. All Rights Reserved 10

11 Outcome based Infrastructure The journey to committed TCO savings Bryan Hair VP & Chief Service Officer Managed Cloud Solutions

12 Responsibility for managing the complexity is shifting from the customer to the vendor There is an increasing gap as technology vendors continue to add features and complexity to their products faster than customer are able to adopt the rate of change IT is shifting its focus from building and maintaining systems to delivering an outcome to the business processes of their enterprise HOW Market Trends WHAT

13 B2B ACCELERATING YOUR TIME TO VALUE TRADITIONAL B U S I N E S S M O D E L CONSUMPTION B U S I N E S S M O D E L OPTIMIZE IT for me LOWER COSTS for me FIX IT for me INSTALL IT for me OPTIMIZE IT for me MANAGE IT for me B4B SELL IT to me CLOUD BENEFIT: VELOCITY OWN IT for me Source: TCG Advisors

14 PROMISE OF THE CLOUD... Inside the Enterprise

15 On premise Hitachi Cloud Managed Solutions Transformation for a legacy environment into a managed private cloud within the 4 walls of the Enterprise Maximize total cost reductions Utility based consumption and billing for Compute (CaaS), Storage (STaaS) & Back up (BUaaS) Elastic resource capacity on demand Service levels committed against a service catalogue Operations out-tasked to HDS (ITILv3) All inclusive unit price (HW, SW, transformation and out-tasking services Assets owned by HDS, not a lease HDS commits to transformation benefits

16 MANAGED PRIVATE CLOUD Hitachi Cloud Managed Solutions Transformation for a legacy environment into a managed private cloud within the 4 walls of the Enterprise MGA Discover Design Transform ACCELERATE TIME TO VALUE VIA A PHASED APPROACH STORAGE BACKUP COMPUTE Consolidation Compliance Archiving Consolidation Virtual or Physical In-built Elasticity

17 STORAGE - THE JOURNEY TO GUARANTEED SAVINGS 30% to 40% TCO reduction Benefits on day one Measured and tracked 92m TCO savings identified over five years 60% savings on cooling and energy 2.2PB transformed $90m TCO savings identified over five years 85% throughput performance increase 3.6PB transformed to date

18 STARTING THE JOURNEY What we need from you attendance at 1 or 2 short workshops What we ll provide quick assessment of the potential savings achievable for you one hour executive presentation What next commencement of Discovery phase and full assessment

19 DISCOVER: FULL ASSESSMENT contract Current TCO MG Analysis/ Assessm ent Due Diligence Financial Engineering Transformation &Transition Services Future TCO Managed Services Benefits realization Measurable gains process Reducing TCO through architectural change Delivered with expert services to reduce risk Financed to meet P&L challenges

20 DESIGN: SERVICE CATALOGUE AND PLATFORM SERVICE SLA-based consumption model SLA commitment via Service catalogue 100% data availability Operations out-tasked to Hitachi ITILv3 methodology COMMERCIAL MANAGED PRIVATE CLOUD SOLUTION WITHIN YOUR DATA CENTER TECHNOLOGY All inclusive pricing Savings commitment Pay-per-use Elastic on-demand capacity Service credit regime Hitachi owns and transforms assets One platform for all your data Virtualization Seamless migration

21 TRANSFORM: NON-DISRUPTIVE AND RAPID MIGRATION ENTRY Managed Services by existing provider TRANSFORMATION: DATA MIGRATION Introduce improved Service Level Catalogue PREPARATION & INITIAL TAKEOVER OF SERVICES Based on existing level services catalogue DATA CENTER TRANSFORMATION IMPROVEMENT PROCESS Service Level Catalogue implemented through Policy Engine EXIT PROCESS

22 OPERATE: YOUR SERVICE CATALOGUE Your requirements into a set of customized unit items No surprises Defined SLAs Improved governance Enables you to manage your business

23 OPERATE: 24 X 7 GLOBAL OPERATIONAL MANAGEMENT AND GOVERNANCE Client Manager - Executive Relationship Service Delivery Manager - Operational Relationship SME / Architect - Technical Relationship / Capacity Management

24 MANAGEMENT AND GOVERNANCE Client Demand Management Capacity Management Trend Management Transparent Management Reporting Availability Performance / Utilization Capacity / Chargeback Replication Management SLA Compliance Service Reviews Operational Delivery Trending Analysis Service Improvement Plans Benefits Tracking

25 WHY HITACHI Commitment to deliver savings (estimated minimum of 30% TCO) True consumption based (used) charging mechanism Better control and predictability of your Enterprise infrastructure. All inclusive Pay- Per-Use pricing no upfront or post contract hidden costs Service Catalogue designed to your business needs Transition to a true operational procurement model Agility to right size and align the IT infrastructure to the business Out tasking of Operational Management with full transparency and oversight through governance 100% data availability guaranteed

26 OUR TRACK RECORD 92m of identified TCO savings 1.35PB capacity reduction Backup success rate > 99% Improved SLAs Lower OPEX Operational risk & single points of failure Efficiencies & mitigated SOX non-conformance issues 60% savings on power, cooling and floor space $90m of identified TCO savings Business-aligned Service Catalog 85% throughput performance increase HDS is our strategic technology partner in our move to provide a cloud-ready Storage as a Service platform globally. Delivering significant operational cost reduction and improved services to our businesses. Executive Director, Global Investment Bank

27 OUR TRACK RECORD OUTCOME FOR A LARGE RETAIL BANK SIGNIFICANT SAVINGS 75% Total Cost Reduction 3 Million Saved legacy maintenance increased resiliency 92% Power Reduction 1.4MW Saved 56% Less Costs block and file storage storage cost savings over 5 years 200 Tons Saved CO 2 equal to a taxi circling the earth 24X!

28 OUR TRACK RECORD OUTCOME FOR A LARGE RETAIL BANK SIGNIFICANT SAVINGS UNMATCHED UTILIZATION 75% Total Cost Reduction storage cost savings over 5 years 90% Smaller datacenter footprint 75 % Increase storage utilization 88% in disk writes Reduction 30,000 storage arrays Backup Tapes Eliminated with backup-to-disk Hosts Migrated

29 Questions and Discussion

30 Questions and Answers Our QA will take place live on the HDS Community at Sign up after the WebTech at:

31 Upcoming WebTechs WebTechs, 9 a.m. PT, 12 p.m. ET Stay tuned for special new sessions in November Top 10 Business Trends Driving IT in 2015, December 10 Check for Links to the recording, the presentation, and Q&A (available next week) Schedule and registration for upcoming WebTech sessions Questions will be posted in the HDS Community:

32 Thank You